Investing

Earnings Previews: Blink, Lordstown Motors, Phunware, Sundial, TMC

Lordstown Motors

EV maker Lordstown Motors Corp. (NASDAQ: RIDE) has had a rough year. Since posting a 52-week high in mid-February, the stock has dropped by nearly 80%. A short-seller report was followed by a delivery delay for its first vehicle, the Endurance pickup.

With competitor Rivian coming public Wednesday at an IPO price of $78 a share, Rivian’s market cap is likely to be at least 10 times larger than Lordstown’s. And Rivian expects to deliver 1,000 of its R1T pickups to customers by the end of the year. Lordstown did sell its Ohio factory to Foxconn in October for a bargain price of $230 million. Foxconn is gearing up to offer EV assembly plants, much like its iPhone assembly plants in the Far East. What will happen to Lordstown is anyone’s guess.

Of eight analysts covering the stock, six have Sell or Strong Sell ratings. There are one Hold and one Buy rating as well. At a price of around $5.70, Lordstown stock trades above the median price target of $5.00. At the high target of $10, the upside potential is 43%.

Analysts do not expect Lordstown to post any revenue in the third quarter. They also expect a reported loss per share of $0.59, a bit better than the prior quarter’s loss per share of $0.61. For the full year, estimates call for a loss per share of $2.52 (last year’s loss was $1.04 per share) and sales of $3.34 million (there were no sales reported in 2020).

Lordstown is not expected to post a profit in 2021, 2022 or 2023. The enterprise value-to-sales multiple is expected to be 202.4 in 2021. Based on estimated earnings for 2022 and 2023, multiples are 0.8 and 0.6, respectively. The stock’s 52-week range is $4.64 to $31.57. Lordstown does not pay a dividend.

Phunware

Not many people had heard of Phunware Inc. (NASDAQ: PHUN) until late October when the company was linked with former President Donald Trump’s proposed SPAC merger with Digital World Acquisition. Phunware’s share price jumped from around $1 to more than $24 in just two days. The stock traded at around $4 Wednesday morning.

The ephemeral Trump boost has given way to a focus on cryptocurrency trading. Before the link with Trump was announced, the stock traded about 1.5 million to 2.0 million shares daily on average. On October 22, nearly 650 million shares traded hands. While the daily average is now around 26 million, it’s dropping with the share price and the apparent pivot to crypto.

All four analysts covering the stock rate it a Buy or Strong Buy. At the price of around $4.00, the stock trades above its median price target of $1.88. At the high price target of $4.50, the upside potential is 12.5%.

Third-quarter revenue is forecast at $2.27 million, up 58% sequentially but down 27% year over year. Analysts are expecting a loss per share of $0.05, better than the prior quarter’s loss of $0.08 per share and the year-ago loss of $0.10 per share. For the full year, Phunware is expected to report a loss per share of $0.38, a penny worse than a year ago, on sales of $8.24 million, down nearly 18%.

Phunware is not expected to post a profit in 2021 or 2022. The enterprise value-to-sales multiple is expected to be 44.8 in 2021. Based on estimated earnings for 2022 and 2023, multiples are 23.3 and 16.5, respectively. The stock’s 52-week range is $0.60 to $24.04. The company does not pay a dividend.

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